Iron ore futures dropped on Monday as weak fundamentals, driven by sluggish steel demand, weighed on market sentiments.
Concerns over long-term demand outlook were exacerbated by mounting port-side iron ore inventory and rising steel stockpiles at major Chinese warehouses.
Last week, iron ore futures were largely supported by stimulus hopes from a government meeting in mid-July. However, analysts believe this support will be short-term without a recovery in finished steel demand.
On the Dalian Commodity Exchange, iron ore futures for September delivery decreased by 3.34pct to 825.5 yuan (USD 113.5) per ton. Dalian coke futures and coking coal futures also declined, falling by 2.73pct and 1.61pct to 2,227 yuan (USD 306) per ton and 1,556 yuan (USD 214) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures dropped by 2.31pct to 3,503 yuan (USD 482) per ton. HRC futures decreased by 1.85pct to 3,706 yuan (USD 510) per ton. Wire rod futures fell by 2.25pct to 3,685 yuan (USD 507) per ton. Stainless steel futures remained almost unchanged at 14,225 yuan (USD 1,956) per ton.
1 USD / 7.27 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,685 |
-2.25 |
-1.76 |
| HRC | 3,706 |
-1.85 |
-1.43 |
| Rebar | 3,503 |
-2.31 |
-1.43 |
| Stainless Steel | 14,225 |
0.04 |
-0.04 |
| Iron Ore | 825.50 |
-3.34 |
-2.42 |
| Coke | 2,227 |
-2.73 |
-1.19 |
| Coking Coal | 1,556 |
-1.61 |
-0.06 |
